Apparatus and method for processing lease insurance information

ABSTRACT

An apparatus and method for processing lease insurance information, including a processor for processing information for generating at least one of an insurance premium and an insurance policy for providing insurance for excess wear or post warranty repairs for a leased entity, wherein the processor generates a information regarding an insurance premium or an insurance policy, wherein the processor generates information regarding at least one of a liability, a potential liability, and a risk of loss, associated with the at least one of an insurance policy and an insurance product, and at least one of a display device and an output device for providing information, the insurance premium, the insurance policy, or the insurance product.

RELATED APPLICATIONS

This is a continuation-in-part application of U.S. patent applicationSer. No. 09/988,445, filed Nov. 20, 2001 now U.S. Pat. No. 6,725,201,which is a continuation-in-part application of U.S. patent applicationSer. No. 08/903,778, filed Jul. 31, 1997 now U.S. Pat. No 6,347,302, thesubject matter and teachings of which applications are herebyincorporated by reference herein in their entirety.

FIELD OF THE INVENTION

The present invention pertains to an apparatus and method for providinginsurance products, services and/or coverage for leased entities and, inparticular, to an apparatus and method for providing insurance productsfor leased and/or rented vehicles, personal as well as business articlesand entities, and residential and commercial premises and properties, aswell as credit derivatives or credit derivative products relatingthereto.

BACKGROUND OF THE INVENTION

In recent times, a growing number of individuals and business concernshave turned to leasing and/or renting articles such as automobiles,boats, airplanes, office equipment, computers and computer equipment andvarious other articles. Residential as well as commercial propertyleases and rentals have also been popular and, in many situations,necessary.

Leasing and renting, however, place responsibility for the care andwell-being of the leased and/or rented entity upon the respective lesseeor renter. The leased or rented entity or premises must be maintainedand delivered back to the lessor or landlord in relatively goodcondition. In this regard, wear and tear which is in excess of normalwear and tear is typically not acceptable to the lessor or landlordwithout the lessee or renter being held responsible for this excess wearand tear and/or damage. The lessee or renter is also usually heldresponsible for post-warranty repairs which are required and which mayresult from normal wear and tear, the malfunction and/or failure of anycomponents and/or systems of the leased and/or rented entity and/or fromany defects in material and/or workmanship in any component and/orsystem of the leased and/or rented entity. In this regard, the lessee orrenter will typically be held financially responsible for this excesswear and tear and/or damage, including post-warranty repairs, to theleased and/or rented entity.

Oftentimes, excess wear and tear of a leased or rented article orpremises may be beyond the lessee's or renter's control, yet the lesseeor renter may still be held financially liable for the resulting repairsand/or repair bills in excess of any previously paid security deposit.This can lead to a financial hardship and an unexpected financial burdento many. In the case of leased motor vehicles, the excess wear and tearcharges may be substantial. The same may hold true for leased boats,recreational vehicles, airplanes as well as leased office equipment,computers and computer equipment. Lastly, those who lease or rentresidential and/or commercial premises may also find themselves withsubstantial liability upon termination of their lease and/or rentalrelationship with the landlord or property owner.

SUMMARY OF THE INVENTION

The present invention provides an apparatus and a method for overcomingthe shortfalls of the prior art and provides an apparatus and a methodfor providing insurance products, services and/or coverage whichprovides insurance coverage for protecting individuals and/or businessentities from liability which may arise as the result of excess wear andtear and/or damage which may occur to a leased and/or rented entityduring the lease and/or rental term, and further, for protectingindividuals and/or business entities from liability for post-warrantyrepairs. The present invention can also provide information regardingcredit derivatives or credit derivative products relating to theherein-described insurance products, services and/or coverage.

The apparatus comprises a central processing unit, a read only memorydevice, a random access memory device, a user input device(s), a displaydevice, an output device and a database. The database contains dataand/or information which is relevant to determining insurance policiesand premiums related to the leasing and/or rental of vehicles, motorvehicles, boats, recreational vehicles, airplanes, aircraft,motorcycles, office equipment, computers, computer equipment and otherarticles, personal and/or commercial, which may be the subject of alease or rental arrangement. The database also includes data and/orinformation which is relevant in determining insurance policies andpremiums for residential and/or commercial properties and/or premises.

Data and/or information, which is related to vehicle leases, includesvehicle year, model, vehicle components and/or systems along with theirrepair costs, replacement costs, probability of damage, probability ofpost-warranty repairs necessitated by wear and tear, damage,malfunctioning components and/or systems and defects in materials,parts, components, systems and/or workmanship, average costs forrepairs, historical leasing data including costs of typical repairs,average total excess wear and tear costs for the entire vehicle. Vehicleleasing data and/or information also includes locality, regional andgeographical data which is correlated with excess wear and tear alongwith data and/or information which is related to driving habits and/orpatterns in a given area or areas. Data and information related toindividuals and/or business entities, by region, occupation etc,including driving habits, leasing histories, etc., will also be includedin the database.

The database will also include data and/or information for particularindividuals and/or business entities which includes personal, individualand/or organizational driving and/or usage patterns and/or drivinghistories and leasing histories as well as any other information whichan insurer may deem necessary and/or desirable in determining whetherinsurance should be offered to an individual and/or business entity.

Data and/or information related to the leasing and/or rental of anyother leasable article and/or entity, such as, for example, personal,residential and/or commercial office equipment, computers, computerequipment, facsimile machines, copy machines, furniture as well as anyother article, piece of equipment and/or entity (hereinafter referred toas “leasable article” or “article”) are also included in the database.Leasable article data and/or information includes article year, model,article components and/or systems along with their repair costs,replacement costs, probability of damage, probability of post-warrantyrepairs necessitated by wear and tear, damage, malfunctioning componentsand/or systems and defects in materials, parts, components, systemsand/or workmanship, average costs for repairs, historical leasing dataincluding typical repair costs and average total excess wear and tearcosts for the entire article. Article leasing data and/or informationalso includes locality, regional and geographical data which iscorrelated with excess wear and tear along with data and/or informationwhich is related to use habits and/or patterns in a given area or areas.Data and information related to individuals and/or business entities, byregion, occupation, etc., including use habits, leasing histories, etc.,will also be included in the database.

The database will also include data and/or information for particularindividuals and/or business entities which includes personal, individualand/or organizational use habits and/or patterns and/or use historiesand leasing histories as well as any other information which an insurermay deem necessary and/or desirable in determining whether insuranceshould be offered to an individual and/or business entity.

Data and/or information related to the lease or rental of residentialand/or commercial premises which are included in the database, includestype and age of premises, parts and/or components and/or systems of thepremises along with their repair costs, replacement costs, probabilityof damage, probability of post-warranty repairs necessitated by wear andtear, damage, malfunctioning components and/or systems and defects inmaterials, parts, components, systems and/or workmanship, average costsfor repairs, historical leasing and/or renting data, including typicalrepair costs and average total excess wear and tear costs for the entirepremises. Premises leasing data and/or information also includeslocality, regional and geographical data which is correlated with excesswear and tear along with data and/or information which is related to usehabits and/or patterns in a given area or areas. Data and informationrelated to individuals and/or business entities, by region, nature ofuse, including use habits, leasing and/or rental histories, etc., willalso be included in the database.

The database also includes data and/or information for particularindividuals and/or business entities which includes personal, individualand/or organizational use habits and/or patterns and/or use historiesand leasing and/or rental histories as well as any other informationwhich an insurer may deem necessary and/or desirable in determiningwhether insurance should be offered to an individual and/or businessentity.

The database also includes all necessary actuarial, statistical andrelated data and/or information necessary in performing the calculationsand analysis deemed necessary in underwriting and issuing an insurancepolicy and/or coverage, including premium determination for any of theherein described insurance policies, products, services and/or coverage.

As noted above, the present invention provides an apparatus and a methodfor providing insurance policies, products, services and/or coverage forprotection against liability which may arise as the result of excesswear and tear to a leased and/or rented entity and/or for liabilitywhich may arise for post-warranty repairs. In this regard, individualsand/or business entities may obtain insurance so as to protectthemselves from liabilities which might arise from the lease and/orrental of an entity which may have experienced excess wear and tearand/or damage during the lease or rental term. Further insurance forpost-warranty repairs may also be obtained.

The present invention can also provide insurance policies, products,services and/or coverage for any of the herein-described entities whileproviding an incentive and/or incentive or incentives, to individualsand/or business entities, for minimizing excess wear and tear and/ordamage to the leased and/or rented entity by providing for acommensurate rebate of a portion of the policy premiums or charges, atthe end of the lease and/or rental term. In this regard, an individualand/or business entity may choose to elect an insurance policy with anincentive program so that a portion of the policy premium or chargeswill be refunded to him, her, or it, respectively, when and if theentity is returned with no and/or minimal excess wear and tear and/orwith no and/or minimal damage. Such an incentive program would serve toreward individuals and/or business entities who and/or which,respectively, maintain the entity, during the lease and/or rental term,so that the entity is returned with no and/or minimal wear and tear orwith no and/or minimal damage.

In another embodiment, the apparatus of the present invention isutilized in a network environment so as to provide insurance policies,products, services and/or coverage in, and over, a network such as on,or over, the Internet, the World Wide Web and/or any othercommunications network and/or system.

In another embodiment, the apparatus and method of the present inventioncan be utilized in order to create a credit derivative which is based onany liability or liabilities which can be created by, or which can bepotentially created by, any of the lease insurance policies, products,and/or instruments, which can be provided pursuant to, and/orfacilitated by, the present invention.

The apparatus and method of the present invention can identify the leaseinsurance policy or lease insurance product which is being offered andcan ascertain the liability, the potential liability, or the risk ofloss, which is or which may be associated with the lease insurancepolicy or the lease insurance product.

The apparatus and method of the present invention can also identify acredit derivative which can be created and issued to investors in orderto reduce the liability or risk of loss associated with the leaseinsurance policy or product. The credit derivative can be any one ormore of a bond, a note, a securitized bond, a securitized note, a swap,a credit swap, an option, a credit option, a put option, a call option,a credit-linked note, a total return swap, a default swap, an exoticoption, an exotic credit option, a swaption or a swap option, a totalrate of return swap, a loan swap, a credit swap, or any other instrumentwhich can be utilized as a credit derivative.

The apparatus and method of the present invention can also determine theprice or pricing of the credit derivative, credit derivatives, or creditderivative units, for the identified credit derivative. The apparatusand method of the present invention can also determine and/or generatethe offering terms (i.e. time for holding the credit derivative, time tomaturity of the credit derivative instrument, interest rate of thecredit derivative, rate of return of the credit derivative, default riskinformation, issuer default risk, probability of default by the issuerof the credit derivative, probability of non-default by the issuer, andany other terms or information which can be typically provided alongwith a credit derivative or other investment or financial instrument,etc.).

The present invention can output the information the identified creditderivative and the information regarding the pricing and/or offeringterms for the credit derivative, credit derivatives, or creditderivative units. The credit derivative or credit derivatives can thenbe issued the credit derivatives to investors.

The present invention can process transactions involving the purchaseand/or sale of the insurance policies described herein. In this manner,the present invention can be utilized to sell any of the insuranceproducts, services, coverage, and/or policies described herein. Thepresent invention can also be used as a clearinghouse for selling and/orpurchasing any or the herein-described insurance products, services,coverage and/or policies.

The present invention can also be used to receive and/or processinsurance claims relating to or arising from any of the herein-describedinsurance products, services, coverage and/or policies.

The present invention can also be used to process transactions involvingthe purchase and/or sale of the insurance policies described herein onor over a communication network and/or on or over the Internet and/orthe World Wide Web. The present invention can also be used as aclearinghouse for selling and/or purchasing any or the herein-describedinsurance products, services, coverage and/or policies.

The present invention can also be used to process transactions involvingthe purchase and/or sale of the credit derivatives for any of theinsurance products, services, coverage, and/or policies describedherein. These credit derivative transactions can also be performed on orover a communication network and/or on or over the Internet and/or theWorld Wide Web.

The present invention can also be utilized to sell and/or purchasecredit derivatives for or relating to any of the insurance products,services, coverage, and/or policies described herein. The presentinvention can also be utilized as a clearinghouse for selling and/orpurchasing credit derivatives for or relating to any of theherein-described insurance products, services, coverage and/or policies.

The present invention can also be utilized to receive and/or processtrades and/or claims relating to or arising from any of theherein-described credit derivatives.

The present invention can also be, can also be used as, and/or can be anintegrated and/or peripheral system of, a transaction computer system ora computer system which is used for processing insurance transactions,financial transactions, insurance claims transactions, and/or brokeragetransactions.

Accordingly, it is an object of the present invention to provide anapparatus and method for providing insurance policies, products,services and/or coverage for leased and/or rented entities and/orpremises for providing insurance protection against liability which mayarise as the result of excess wear and tear and/or damage which mayoccur to a leased and/or rented entity during the lease and/or rentalterm.

It is another object of the present invention to provide an apparatusand method for providing insurance policies, products, services and/orcoverage for leased and/or rented entities and/or premises for providinginsurance protection against liability which may arise as the result ofpost-warranty repairs.

It is another object of the present invention to provide an apparatusand a method for providing insurance policies, products, services and/orcoverage for leased and/or rented entities and/or premises which isimplemented using software in conjunction with a computer and/or aprocessing system.

It is another object of the present invention to provide an apparatusand a method for providing insurance policies, products, services and/orcoverage for leased motor vehicles.

It is another object of the present invention to provide an apparatusand a method for providing insurance policies, products, services and/orcoverage for leased boats and marine vehicles.

It is another object of the present invention to provide an apparatusand a method for providing insurance policies, products, services and/orcoverage for leased airplanes and aircraft.

It is another object of the present invention to provide an apparatusand a method for providing insurance policies, products, services and/orcoverage for leased articles and/or equipment of any variety or type.

It is another object of the present invention to provide an apparatusand a method for providing insurance policies, products, services and/orcoverage for leased and/or rented residential premises and/or commercialpremises.

It is yet another object of the present invention to provide anapparatus and a method for providing insurance policies, products,services and/or coverage for leased and/or rented entities whichprovides incentives for maintaining the leased and/or rented entity withno and/or minimum excess wear and tear and/or with no and/or minimaldamage during the lease and/or rental term.

It is yet another object of the present invention to provide anapparatus and a method for providing insurance policies, products,services and/or coverage for leased and/or rented entities, vehicle,premises, equipment and other appropriate articles on, or over, acommunication network such as on, or over, the Internet, the World WideWeb and/or any other communications and/or network environment and/ormedium.

It is still another object of the present invention to provide anapparatus and method for providing information regarding a creditderivative or a credit derivative product relating to any of the leaseinsurance products, services, and/or coverage described herein.

It is another object of the present invention to create a creditderivative which is based on, or relates to, any liability orliabilities which can be created by, or which can be potentially createdby, any of the lease insurance policies, products, and/or instruments,which can be provided pursuant to, and/or facilitated by, the presentinvention.

It is still another object of the present invention to create a creditderivative which can be utilized to provide a hedge for, to provideinsurance for, or to provide reinsurance for, any liability, potentialliability, or risk of loss, associated with any of the lease insurancepolicies, products, and/or instruments, which can be provided pursuantto, and/or facilitated by, the present invention.

It is yet another object of the present invention to provide priceinformation, pricing information, and/or offering terms information, fora credit derivative which can be utilized to provide a hedge for, toprovide insurance for, or to provide reinsurance for, any liability,potential liability, or risk of loss, associated with any of the leaseinsurance policies, products, and/or instruments, which can be providedpursuant to, and/or facilitated by, the present invention.

It is another object of the present invention to provide an apparatusand method which can be utilized to process transactions involving thepurchase and/or sale of the insurance policies described herein.

It is still another object of the present invention to provide anapparatus and method which can be utilized as a clearinghouse forselling and/or purchasing any or the herein-described insuranceproducts, services, coverage and/or policies.

It is yet another object of the present invention to provide anapparatus and method which can be utilized to receive and/or processinsurance claims relating to or arising from any of the herein-describedinsurance products, services, coverage and/or policies.

It is another object of the present invention to provide an apparatusand method which can be utilized to process transactions involving thepurchase and/or sale of the insurance policies described herein on orover a communication network and/or on or over the Internet and/or theWorld Wide Web.

It is still another object of the present invention to provide anapparatus and method which can be utilized to process transactionsinvolving the purchase and/or sale of credit derivatives for any of theinsurance products, services, coverage, and/or policies describedherein.

It is yet another object of the present invention to provide anapparatus and method which can be utilized to process credit derivativetransactions on or over a communication network and/or on or over theInternet and/or the World Wide Web.

It is another object of the present invention to provide an apparatusand method which can be utilized to sell and/or purchase creditderivatives for or relating to any of the insurance products, services,coverage, and/or policies described herein.

It is still another object of the present invention to provide anapparatus and method which can be utilized as a clearinghouse forselling and/or purchasing credit derivatives for or relating to any ofthe herein-described insurance products, services, coverage and/orpolicies.

It is yet another object of the present invention to provide anapparatus and method which can be utilized to receive and/or processtrades and/or claims relating to or arising from any of theherein-described credit derivatives.

It is another object of the present invention to provide an apparatusand method which can be utilized as, and/or can be an integrated and/orperipheral system of, a transaction computer system or a computer systemwhich is used for processing insurance transactions, financialtransactions, insurance claims transactions, and/or brokeragetransactions.

Other objects and advantages of the present invention will be apparentto those individuals skilled in the art upon a review of the DescriptionOf The Preferred Embodiment taken in conjunction with the Drawings whichfollow.

BRIEF DESCRIPTION OF THE DRAWINGS

In the Drawings:

FIG. 1 illustrates a block diagram of the apparatus which is the subjectof the present invention;

FIGS. 2A and 2B illustrate a flow diagram of a preferred embodimentmethod of operation of, or method for utilizing, the apparatus of thepresent invention;

FIGS. 3A and 3B illustrate a flow diagram of another embodiment methodof operation of, or method for utilizing, the apparatus of the presentinvention;

FIGS. 4A and 4B illustrate a flow diagram of another embodiment methodof operation of, or method for utilizing, the apparatus of the presentinvention;

FIG. 5 illustrates another embodiment of the apparatus of the presentinvention which is utilized in a network environment; and

FIG. 6 illustrates a flow diagram of a method for utilizing the presentinvention in order to create and/or to price a credit derivativecorresponding to any liability or potential liability associated with alease insurance policy or lease insurance product.

DESCRIPTION OF THE PREFERRED EMBODIMENTS

The present invention provides an apparatus and a method for providinginsurance products, services and/or coverage which provides insurancecoverage for protecting individuals and/or business entities fromliability which may arise as the result of excess wear and tear and/ordamage which may occur to a leased and/or rented entity during the leaseand/or rental term, and further, for protecting individuals and/orbusiness entities from liability for post-warranty repairs.

The present invention can also provide information regarding creditderivatives and credit derivative products relating to theherein-described insurance products, services and/or coverage. Thepresent invention can also be utilized to create a credit derivativewhich is based on any liability or liabilities which can be created by,or which can be potentially created by, any of the lease insurancepolicies, products, and/or instruments, which can be provided pursuantto, and/or facilitated by, the present invention.

The present invention can also be utilized to process transactionsregarding any of the herein-described insurance products, servicesand/or coverage. The present invention can also be utilized to processtransactions regarding any of the herein-described credit derivativesfor any of the herein-described insurance products, services and/orcoverage.

Applicant incorporates by reference herein the subject matter andteachings of U.S. patent application Ser. No. 09/988,445, filed Nov. 20,2001, and entitled “APPARATUS AND METHOD FOR PROVIDING INSURANCEPRODUCTS, SERVICES AND/OR COVERAGE FOR LEASED ENTITIES”. Applicant alsoincorporates by reference herein the subject matter and teachings ofU.S. patent application Ser. No. 08/903,778, filed Jul. 31, 1997, andentitled “APPARATUS AND METHOD FOR PROVIDING INSURANCE PRODUCTS,SERVICES AND/OR COVERAGE FOR LEASED ENTITIES”.

FIG. 1 illustrates a block diagram of the apparatus which is the subjectof the present invention and which is denoted generally by the referencenumeral 100. The apparatus 100 comprises a central processing unit (CPU)1 which, in the preferred embodiment, is a microprocessor. The CPU 1 mayalso be a microcomputer, a minicomputer, a macro-computer, and/or amainframe computer, depending upon the application. The CPU 1 may alsobe implemented as a server computer in a network configuration.

The apparatus 100 also comprises a read only memory (ROM) 2 and a randomaccess memory (RAM) 3 which are also connected to the CPU 1. Theapparatus 100 also comprises a user input device(s) 4 which comprise(s)any one or more of a keyboard, a scanner, a user pointing device, suchas, for example, a mouse, a touch pad, and/or an audio input deviceand/or a video input device, etc., if desired, which input device(s) arealso be connected to the CPU 1. The apparatus 100 also comprises adisplay device 5, such as a display monitor, which is also connected tothe CPU 1, and an output device 6, such as a printer, a fax/modem, etc.,which output device is also connected to the CPU 1.

The apparatus 100 also comprises a database(s) 7, wherein variousinformation and/or data, which is utilized in the various processingroutines, as will be described herein, is stored and which is alsoconnected to, and accessible by, the CPU 1. Various data and/orinformation related to the leasing and/or rental of vehicles, motorvehicles, trucks, construction equipment, farm equipment, boats,recreational vehicles, airplanes, aircraft, motorcycles, officeequipment, computers, computer equipment, and other articles and/ordevices, equipment, etc., including articles and/or equipment which maybe utilized in, and/or in conjunction with residential and/or commercialpremises, is stored in the database 7. The database 7 also includes dataand/or information related to the leases of residential and/orcommercial property and/or premises.

Data and/or information related to vehicle leases, which is included inthe database 7, includes vehicle year, model, vehicle components and/orsystems along with their repair costs, replacement costs, probability ofdamage, probability of post-warranty repairs necessitated by wear andtear, damage, malfunctioning components and/or systems and defects inmaterials, parts, components, systems and/or workmanship, average costsfor repairs, historical leasing data, average total excess wear and tearand/or damage costs for the entire vehicle. Vehicle leasing data and/orinformation also includes locality, regional and geographical data whichis correlated with excess wear and tear and/or damage costs along withdata and/or information which is related to driving and/or usage habitsand/or patterns in a given area or areas. Data and information relatedto individuals and/or business entities, by region, occupation etc,including driving and/or usage habits, leasing histories, etc., willalso be included in the database 7.

Excess wear and tear and damage, as the terms are used herein, refer to,and includes, any and all conditions and/or states of the leased and/orrented entity, including but not limited to scratches, dents, tears,stains, etc, malfunctioning and/or inoperable components and/or systems,state(s) of disrepair, and any and all other states and/or conditionswhich will subject the lessor and/or renter to any liability therefor atthe end of the lease and/or rental term.

Post-warranty repairs, as the term is used herein, includes any and allrepairs which are made necessary from any wear and tear, normal orotherwise, to components and/or systems of the herein-described entitiesand further includes repairs which result from defects in materialsand/or workmanship. Post-warranty repairs also include any and allrepairs which would be covered under a manufacturer's warranty. In thisregard, the apparatus and method of the present invention provides forextended warranty protection for the leased and/or rented entity for theduration of the lease or rental term. The database 7 also includes anyand all data and/or information which will facilitate the calculation,determination and/or formulation of an insurance policy, product,service and/or coverage for providing extended warranty protection forany leased and/or rented entity described herein.

The database 7 also includes data and/or information for particularindividuals and/or business entities which includes personal, individualand/or organizational driving and/or usage patterns and/or drivingand/or usage histories and leasing histories as well as any otherinformation which an insurer may deem necessary and/or desirable indetermining whether insurance should be offered and/or underwritten foran individual and/or business entity.

Data and/or information related to the leasing and/or rental of anyother leasable article and/or entity, such as, for example, personal,residential and/or commercial office equipment, computers, computerequipment, facsimile machines, copy machines, furniture, as well as anyother article, piece of equipment and/or entity (hereinafter referred toas “leasable article”), which may be the subject of a lease or rentalarrangement, is also included in the database 7.

Leasable article data and/or information includes article age or modelyear, model, article components and/or systems along with their repaircosts, replacement costs, probability of damage, probability ofpost-warranty repairs necessitated by wear and tear, damage,malfunctioning components and/or systems and defects in materials,parts, components, systems and/or workmanship, average costs forrepairs, historical leasing data and average total excess wear and tearand/or damage costs for the entire article. Article leasing data and/orinformation also includes locality, regional and geographical data whichis correlated with excess wear and tear and/or damage costs along withdata and/or information which is related to usage habits and/or patternsin a given area or areas. Data and information related to individualsand/or business entities, by region, occupation etc, including usagehabits, leasing histories, etc., will also be included in the database7.

The database 7 also includes data and/or information for particularindividuals and/or business entities which includes personal, individualand/or organizational use and/or usage habits and/or patterns and/or useor usage histories and leasing histories as well as any otherinformation which an insurer may deem necessary and/or desirable indetermining whether insurance should be offered to an individual and/orbusiness entity.

Data and/or information related to the leasing and/or rental ofresidential and/or commercial premises, which is included in thedatabase 7, includes type and age of the premises, portions and/orcomponents and/or systems of the premises, along with their repaircosts, replacement costs, probability of damage, probability of damage,probability of post-warranty repairs necessitated by wear and tear,damage, malfunctioning components and/or systems and defects inmaterials, parts, components, systems and/or workmanship, average costsfor repairs, historical leasing and/or renting information, averagetotal excess wear and tear costs for the entire premises. Premisesleasing data and/or information also includes locality, regional andgeographical data which is correlated with excess wear and tear and/ordamage, along with data and/or information which is related to use orusage habits and/or patterns for a given type of premises and/or for agiven area or areas. Data and information related to individuals and/orbusiness entities, by region, nature of use or usage, including use orusage habits, leasing and/or rental histories, etc., is also included inthe database 7.

The database 7 will also include data and/or information for particularindividuals and/or business entities which includes personal, individualand/or organizational use and/or usage habits and/or patterns and/or useor usage histories and leasing and/or rental histories as well as anyother information which an insurer may deem necessary and/or desirablein determining whether insurance should be offered to an individualand/or business entity.

The data and/or information which is stored in the database(s) 7, in thepreferred embodiment, also includes data and/or information related tovarious damage and/or repairs which may need to be performed on any ofthe above entities, the frequency with which these repairs had to bemade in previous lease and/or rental situations involving the same,identical and/or similar types of individuals and/or business entities,and the costs for repairing damage and/or needed repairs, which mayinclude high, low and average repair costs. For example, if a motorvehicle is leased, average, high and low repair costs which haveresulted from previous leases of the same or a similar vehicle, would bestored in the database 7, as would analogous information concerning anyof the above identified leased and/or rented entities and/or articles.

The database 7 also comprises any and all necessary actuarial,statistical, insurance, risk, risk of loss and application specific dataand/or information which is related to, and which is necessary and/orhelpful in calculating, determining, formulating and/or underwritinginsurance policies, products, services and/or coverage. In particular,the database 7 will contain any necessary and/or helpful data and/orinformation for providing insurance policies, products, services and/orcoverage for insuring against liability for excess wear and tear and/ordamage to a leased and/or a rented entity which may occur during thelease and/or rental term, along with liability for post-warrantyrepairs.

The database 7 also comprises data and/or information related toinsurance premiums which data and/or information is utilized tocalculate and/or underwrite an insurance policy, depending upon thenature and the amount of coverage for the leased and/or rented entity ofinterest. The database 7 also contains statistical information relatedto sex, age, driving and use record histories for individuals and/orbusiness entities which information can be utilized in insurance policyand/or premium determinations and calculations. The database 7 alsocomprises data and/or information concerning past lease experiences, ifany, for individuals and business entities, including specificindividuals and/or business entities, along with corresponding recordsconcerning any end of lease damage and/or excess wear and tear which mayhave occurred in past leasing and/or rental relationships.

The database 7 also contains data and/or information related to leaseand or rental term, data and/or information related to geography,season, etc., along with data and/or information related to how thesevariables affect any other data and/or information described herein.

The data and/or information which is stored in the database 7, inaddition to the above data and/or information, contains any othernecessary, recommended and/or supplemental data and/or information,and/or application program(s) which may be helpful and/or desired by aninsurer in determining whether to issue an insurance policy, product,service and/or coverage described herein.

The data and/or information which is stored in the database 7 may beutilized to calculate risk, risk of loss and/or damage probabilities foran individual and/or business entity, for any given lease or rentalsituation, lease or rental entity and/or lease and/or rental agreement.

The data and/or information which is stored in the database 7 may beutilized to calculate risk, risk of loss and/or damage probabilities forany of the leased and/or rented vehicles, articles and/or premisesdescribed herein, for any individual and/or business entity and for anygiven lease and/or rental situation. The present invention may beutilized to custom design and/or calculate an insurance policy, product,service and/or coverage for a particular lease or rental agreementand/or situation by utilizing risk, risk of loss, risk assessment andunderwriting techniques which can be modified for the particularapplication.

The data and/or information described herein will be utilized togenerate and underwrite an insurance policy as well as to calculate aninsurance premium or charges, depending upon the nature and the amountof the coverage desired for the leased and/or rented entity. The dataand/or information which is stored in the database 7 will be updatedregularly so as to maintain the most accurate and current data aspossible. The database 7 can also contain any data and/or informationneeded and/or desired for creating and pricing a credit derivative orcredit derivatives which can be utilized in order to allow a respectiveinsurance company, insurer, or other issuer, of any of the leaseinsurance policies or lease insurance products described herein, tohedge its liability or risk of loss, to limit its liability or risk ofloss, and/or to obtain insurance or reinsurance, for any liability orliabilities and/or potential liability or potential liabilities whichmay be associated with and/or which may result from the issuance of anyof the herein-described lease insurance policies or lease insuranceproducts.

The present invention provides an apparatus and a method for providinginsurance policies, products, services and/or any of theherein-described coverages for any of the herein-described leased and/orrented entities. In this regard, individuals and/or business entitiesmay obtain insurance so as to protect themselves from liabilities whichmight arise from a leased and/or rented entity being returned withdamage and/or excess wear and tear at the end of the lease and/or rentalterm, as well as providing protection against liabilities forpost-warranty repairs.

FIGS. 2A and 2B illustrate a flow diagram of a preferred embodimentmethod of operation of, or method for utilizing, the apparatus andmethod of the present invention which is utilized in conjunction withleased vehicles, which vehicles include motor vehicles, includingpassenger and commercial automobiles and trucks, boats, marine vehicles,airplanes, aircraft, motorcycles, recreational vehicles and/or motorand/or mobile homes.

In FIGS. 2A and 2B, the method and/or operation of the apparatuscommences at step 20. At step 21, data and/or information pertaining tothe vehicle to be leased, including type, year, make and model, alongwith the lease term and any other pertinent information related to thelease (i.e. mileage allowance, down payment, security payment, lease endpurchase option and price, etc.) will be selected and input into theapparatus 100. Information pertaining to insurance coverage forpost-warranty repairs, if desired, is also selected and input at step21.

At step 22, data and/or information related to the individual orbusiness entity who or which, respectively, will be leasing the vehicle(i.e. individual, business entity, including driving and/or usagehistory, insurance history, past leasing history, desired insurancecoverage, insurance deductible, insurance policy terms, etc.) will beentered into the apparatus 100. At step 22, the individual and/orbusiness entity may or may not also select an insurance policy whichprovides for an incentive for maintaining the vehicle with no and/orminimum wear and tear and/or with no and/or minimum damage during thelease term. In this regard, the individual and/or business entity mayselect to participate in an incentive policy agreement whereby theindividual and/or business entity may receive a rebate and/or a returnof a portion of the insurance policy's premiums and/or charges at theend of the lease term if the vehicle is returned with no and/or minimalexcess wear and tear and/or with no and/or minimal damage.

At step 23, the apparatus 100 will calculate expected excess wear andtear and/or damage, and/or information related to post-warranty repair,which is expected to occur during the lease term, given the data inputat steps 21 and 22 along with the pertinent data and/or informationwhich is stored in the database 7. The data and/or information which isstored in the database 7 and which is utilized in calculating aninsurance premium and formulating the associated insurance policy mayalso include any one or more of data and/or information related tovarious damage and/or repairs which may need to be performed on, or for,the vehicle in question, the frequency with which these repairs had tobe made in previous leases and/or rentals dealing with the same,identical and/or similar and/or analogous vehicles, the costs forrepairing excessive wear and tear and/or damage, post-warranty repairdata, data and/or information related to insurance premiums which dataand/or information is utilized to calculate an associated insurancepremium, the nature of the desired coverage, coverage deductibles,statistical information related to any of the above data and/orinformation as well as statistical information related to sex, age anddriving and usage record histories for the individual and/or businessentity as well as for individuals and/or business entities in the same,similar or analogous classes.

Database data and/or information also includes past lease experiences,if any, for the individual and/or business entity as well as forindividuals and/or business entities in the same, similar, or analogousclasses, records concerning any end of lease damage which may haveoccurred in an individual's and/or business entity's past leasingrelationships, or for those individuals and/or business entities in thesame, similar or analogous classes and data and/or information relatedto lease and/or rental term.

At step 24, the apparatus 100 will determine whether the individualand/or business entity has chosen to participate in an insurance policywhich provides for the above-described incentives. At step 24, if anincentive policy has been chosen, the apparatus 100, at step 25, willcalculate or formulate an insurance policy and corresponding premium orcharge which provides for the above-described incentive feature. If, atstep 24, it is determined that an incentive policy has not been chosen,the apparatus 100, at step 26, will calculate or formulate an insurancepolicy and corresponding premium without the incentive feature.

At step 27, the policy can then be presented to the individual and/orbusiness entity for acceptance. The individual may then, at step 27,chose to accept or reject the insurance policy. If, at step 27A, it isdetermined that the individual and/or business entity did not accept thepolicy, the processing will cease at step 28. If, at step 27A, it isdetermined that the individual and/or business entity accepted thepolicy, the parties will enter into the relevant insurance contract atstep 29, typically with the payment of the policy premium or partialpremium and the issuance of the insurance policy. The policy willthereafter be issued. The policy will thereafter be in effect so as toprotect the individual and/or business entity from liability for excesswear and tear and/or damage which may occur to the vehicle during thelease term. Upon the termination of the lease term, at step 30, thevehicle will be inspected for excess wear and tear and/or damage.

At step 31, the value or repair amount and/or liability for any excesswear and tear and/or damage, which may be found, will be calculated. Ifpost-warranty coverage is in effect, the value for any post-warrantyrepairs will also be determined at step 31. At step 32, the apparatus100 will then determine if the value of any excess wear and tear and/ordamage is of such a magnitude to trigger policy coverage. The apparatus100 will also, at step 32, determine if post-warranty coverage istriggered.

If, at step 32, policy coverage is triggered, the insurance provider orpolicy underwriter will, at step 33, assume responsibility for, andeffect payment to the vehicle owner and/or leasing entity for, theexcess wear and tear and/or damage. The insurance provider or policyunderwriter will also, at step 33, assume responsibility for, and effectpayment for any post-warranty repairs, if such coverage is in effect.If, however, coverage is not triggered at step 32, the insuranceprovider or underwriter will, at step 34, have no liability to thevehicle owner or leasing entity.

At step 35, it will be determined if an incentive policy is in effect.If no incentive policy is in effect, the operation of the apparatusand/or process will cease at step 36. If, at step 35, it is determinedthat an incentive policy is in effect, the apparatus 100, at step 37,will determine the amount of the rebate and/or premium which is to bereturned to the individual and/or business entity. At step 38, theindividual and/or business entity will receive the rebate.

If no excess wear and tear and/or no damage has been found to exist, theindividual and/or business entity will receive the full rebate amount atstep 38. If excess wear and tear and/or damage has been found to existat, or above, a pre-defined amount, the individual and/or businessentity will receive no rebate at step 38. If excess wear and tear and/ordamage has been found to exist below a pre-defined limit, a rebateamount will be calculated according to a pre-defined calculation and/orinterpolation routine and the individual and/or business entity willreceive the calculated amount at step 38.

In the preferred embodiment, a linear interpolation routine is utilizedto calculate the partial rebate amount at step 38. It is important tonote that any mathematical computation routine and/or interpolationroutine, linear or non-linear, as well as any other method forcalculating an amount, or a partial amount, may be utilized in theprocessing scheme of the present invention. As noted above, rebatecalculations will be performed at step 37.

Once the individual and/or business entity has been issued their or itsrebate, the liability of the insurance provider and/or underwriter willcease at step 39. The operation and method of the present invention willthen cease at step 40.

The apparatus 100 and/or the CPU 1 can process transactions involvingthe purchase and/or sale of the insurance policies described herein. Inthis manner, the apparatus 100 and/or the CPU 1 can be utilized to selland/or purchase any of the insurance products, services, coverage,and/or policies described herein. The apparatus 100 and/or the CPU 1 canalso be used as a clearinghouse for selling and/or purchasing any or theherein-described insurance products, services, coverage and/or policies.

The apparatus 100 and/or the CPU 1 can also be used to receive and/orprocess insurance claims relating to or arising from any of theherein-described insurance products, services, coverage and/or policies.

FIGS. 3A and 3B illustrate a flow diagram of an another embodimentmethod of operation of, or method for utilizing, the apparatus andmethod of the present invention which is utilized in conjunction with aleased article, which may include an article of office equipment,business equipment, exercise equipment, computers, computer equipmentand/or peripherals and any other item, device or article which may bedeemed to be desirable as the subject of a lease and/or a rentalarrangement and/or agreement (hereinafter referred to as “article”).

In FIGS. 3A and 3B, the operation of the apparatus and method commencesat step 50. At step 51, data and/or information pertaining to thearticle to be leased, including type, year, make and model, along withthe lease term and any other pertinent information related to the lease(i.e. use allowance, down payment, security payment, lease end purchaseoption and price, etc.) will be selected and input into the apparatus100. Information pertaining to insurance coverage for post-warrantyrepairs, if desired, is also selected and input at step 51.

At step 52, data and/or information related to the individual and/orbusiness entity who, or which, respectively, will be leasing the article(i.e. individual and/or business entity use or usage history, insurancehistory, past leasing history, desired insurance coverage, insurancedeductible, insurance policy terms, etc.) will be entered into theapparatus 100. At step 52, the individual and/or business entity may ormay not also select an insurance policy which provides for an incentivefor maintaining the article with no and/or minimum wear and tear and/orwith no and/or minimum damage during the lease term. In this regard, theindividual and/or business entity may select to participate in anincentive policy agreement whereby the individual and/or business entitymay receive a rebate and/or a return of a portion of the insurancepolicy's premiums and/or charges at the end of the lease term if thearticle is returned with no and/or minimal excess wear and tear and/orwith no and/or minimal damage.

At step 53, the apparatus 100 will calculate expected excess wear andtear and/or damage, and/or information related to post-warranty repair,which is expected to occur during the lease term, given the data inputat steps 51 and 52 along with the pertinent data and/or informationwhich is stored in the database 7. The data and/or information which isstored in the database 7 and which is utilized in calculating aninsurance premium and formulating the associated insurance policy mayalso include any one or more of data and/or information related tovarious damage and/or repairs which may need to be performed on thearticle in question, the frequency with which these repairs had to bemade in previous leases and/or rentals dealing with the same, identicaland/or similar and/or analogous articles, the costs for repairingexcessive wear and tear and/or damage, post-warranty repair data, dataand/or information related to insurance premiums which data and/orinformation is utilized to calculate an associated insurance premium,the nature of the desired coverage, coverage deductibles, statisticalinformation related to any of the above data and/or information as wellas statistical information related to sex, age and use and/or usagehistories for the individual and/or business entity as well as forindividuals and/or business entities in the same, similar or analogousclasses.

Database data and/or information also includes past lease experiences,if any, for the individual and/or business entity as well as forindividuals and/or business entities in the same, similar, or analogousclasses, records concerning any end of lease damage which may haveoccurred in an individual's and/or business entity's past leasingrelationships, or for those individuals and/or business entities in thesame, similar or analogous classes and data and/or information relatedto lease and/or rental term.

At step 54, the apparatus 100 will determine whether the individualand/or business entity has chosen to participate in an insurance policywhich provides for the above-described incentives. At step 54, if anincentive policy has been chosen, the apparatus 100 will, at step 55,calculate or formulate an insurance policy and corresponding premium orcharge which provides for the above-described incentive feature. If, atstep 54, it is determined that an incentive policy has not been chosen,the apparatus 100, at step 56, will calculate or formulate an insurancepolicy and corresponding premium without the incentive feature.

At step 57, the policy can then be presented to the individual and/orbusiness entity for acceptance. The individual may then, at step 57,accept or reject the insurance policy. If, at step 57A, it is determinedthat the individual and/or business entity did not accept the policy,the processing will cease at step 58. If, at step 57A, it is determinedthat the individual and/or business entity accepted the policy, theparties will enter into the relevant insurance contract at step 59,typically with the payment of the policy premium or partial premium andthe issuance of the insurance policy. The policy will then be issued.The policy will thereafter be in effect so as to protect the individualand/or business entity from liability for excess wear and tear and/ordamage which may occur to the vehicle during the lease term. Upon thetermination of the lease period, at step 60, the article will beinspected for excess wear and tear and/or damage.

At step 61, the value or repair amount and/or liability for any excesswear and tear and/or damage which may be found, will be calculated. Ifpost-warranty coverage is in effect, the value for any post-warrantyrepairs will also be determined at step 61. At step 62, the apparatus100 will then determine if the value of any excess wear and tear and/ordamage is of such a magnitude to trigger policy coverage. The apparatus100 will also, at step 62, determine if post-warranty coverage istriggered.

If, at step 62, policy coverage is triggered, the insurance provider orpolicy underwriter will, at step 63, assume responsibility for, andeffect payment to the article owner and/or leasing entity for, theexcess wear and tear and/or damage. The insurance provider or policyunderwriter will also, at step 63, assume responsibility for, and effectpayment for any post-warranty repairs, if such coverage is in effect.If, however, coverage is not triggered at step 62, the insuranceprovider or underwriter will, at step 64, have no liability to thearticle owner or leasing entity.

At step 65, it will be determined if an incentive policy is in effect.If no incentive policy is in effect, the operation of the apparatusand/or process will cease at step 66. If, at step 55, it is determinedthat an incentive policy is in effect, the apparatus 100 will, at step67, determine the amount of the rebate and/or returned premium which isto be returned to the individual and/or business entity. At step 68, theindividual and/or business entity will receive the rebate.

If no excess wear and tear and/or no damage has been found to exist, theindividual and/or business entity will receive the full rebate amount atstep 68. If excess wear and tear and/or damage has been found to existat, or above, a pre-defined amount, the individual and/or businessentity will receive no rebate at step 68. If excess wear and tear and/ordamage has been found to exist below a pre-defined limit, a rebateamount will be calculated according to a pre-defined calculation and/orinterpolation routine and the individual and/or business entity willreceive the calculated amount at step 68.

In the preferred embodiment, a linear interpolation routine is utilizedto calculate the partial rebate amount at step 68. It is important tonote that any mathematical computation routine and/or interpolationroutine, linear or non-linear, as well as any other method forcalculating an amount or a partial amount, may be utilized in theprocessing scheme of the present invention. As noted above, rebatecalculations will be performed during step 67.

Once the individual and/or business entity has been issued their or itsrebate, the liability of the insurance provider and/or underwriter willcease at step 69. The operation and method of the present invention willthen cease at step 70.

The apparatus 100 and/or the CPU 1 can process transactions involvingthe purchase and/or sale of the insurance policies described herein. Inthis manner, the apparatus 100 and/or the CPU 1 can be utilized topurchase and/or sell any of the insurance products, services, coverage,and/or policies described herein. The apparatus 100 and/or the CPU 1 canalso be used as a clearinghouse for selling and/or purchasing any or theherein-described insurance products, services, coverage and/or policies.

The apparatus 100 and/or the CPU 1 can also be used to receive and/orprocess insurance claims relating to or arising from any of theherein-described insurance products, services, coverage and/or policies.

FIGS. 4A and 4B illustrate a flow diagram of another embodiment methodof operation of, or method for utilizing, the apparatus and method ofthe present invention which is utilized in conjunction with a leasedand/or rented residential and/or commercial premises (hereinafterreferred to as “premises”).

In FIGS. 4A and 4B, the operation of the apparatus and/or methodcommences at step 80. At step 81, data and/or information pertaining tothe type, age, make and model, along with lease or rental term, and anyother pertinent information related to the lease or rental (i.e. useallowance, down payment, security payment, lease end purchase option andprice, etc.) to be leased will be selected and input into the apparatus100. Information pertaining to insurance coverage for post-warrantyrepairs, if desired, is also selected and input at step 81.

At step 82, data and/or information related to the individual orbusiness entity who or which, respectively, will be leasing the premises(i.e. individual and/or business entity use or usage history, insurancehistory, past leasing history, desired insurance coverage, insurancedeductible, insurance policy terms, etc.) will be entered into theapparatus 100. At step 82, the individual and/or business entity may ormay not also select an insurance policy which provides for an incentivefor maintaining the premises with no and/or minimum wear and tear and/orwith no and/or minimum damage during the lease or rental term. In thisregard, the individual and/or business entity may select to participatein an incentive policy agreement whereby the individual and/or businessentity can receive a rebate and/or a return of a portion of theinsurance policy's premiums and/or charges at the end of the lease orrental term if the premises is returned with no and/or minimal excesswear and tear and/or with no and/or minimal damage.

At step 83, the apparatus 100 will calculate expected excess wear andtear and/or damage, and/or information related to post-warranty repair,which is expected to occur during the lease term, given the data inputat steps 81 and 82 along with the pertinent data and/or informationwhich is stored in the database 7. The data and/or information which isstored in the database 7 and which is utilized in calculating aninsurance premium and formulating the associated insurance policy mayalso include any one or more of data and/or information related tovarious damage and/or repairs which may need to be performed on, or for,the premises in question, the frequency with which these repairs had tobe made in previous leases and/or rentals dealing with the same,identical and/or similar and/or analogous premises, the costs forrepairing excessive wear and tear and/or damage, post-warranty repairdata, data and/or information related to insurance premiums which dataand/or information is utilized to calculate an associated insurancepremium, the nature of the desired coverage, coverage deductibles,statistical information related to any of the above data and/orinformation as well as statistical information related to sex, age anduse and usage histories for the individual and/or business entity aswell as for individuals and/or business entities in the same, similar oranalogous classes.

Database data and/or information also includes past lease or rentalexperiences, if any, for the individual or business entity as well asfor individuals and/or business entities in the same, similar oranalogous classes, records concerning any end of lease or end of rentaldamage which may have occurred in an individual's and/or businessentity's past leasing relationships, or for those individuals and/orbusiness entities in the same, similar or analogous classes and dataand/or information related to lease and/or rental term.

At step 84, the apparatus 100 will determine whether the individualand/or business entity has chosen to participate in an insurance policywhich provides for the above-described incentives. At step 84, if anincentive policy has been chosen, the apparatus 100, at step 85, willcalculate or formulate an insurance policy and corresponding premium orcharge which provides for the above-described incentive feature. If, atstep 84, it is determined that an incentive policy has not been chosen,the apparatus 100, at step 86, will calculate or formulate an insurancepolicy and corresponding premium without the incentive feature.

At step 87, the policy can then be presented to the individual and/orbusiness entity for acceptance. The individual may then, at step 87,accept or reject the insurance policy. If, at step 87A, it is determinedthat the individual and/or business entity did not accept the policy,the processing will cease at step 88. If, at step 87A, it is determinedthat the individual and/or business entity accepted the policy, theparties will enter into the relevant insurance contract at step 89,typically with the payment of the policy premium or partial premium andthe issuance of the insurance policy. The policy will then be issued.The policy will thereafter be in effect so as to protect the individualand/or business entity from liability for excess wear and tear and/ordamage which may occur to the premises during the lease or rental term.Upon the termination of the lease or rental period, at step 90, thepremises will be inspected for excess wear and tear and/or damage.

At step 91, the value or repair amount and/or liability for any excesswear and tear and/or damage which may be found, will be calculated. Ifpost-warranty coverage is in effect, the value for any post-warrantyrepairs will also be determined at step 91. At step 92, the apparatus100 will then determine if the value of any excess wear and tear and/ordamage is of such a magnitude to trigger policy coverage. The apparatus100 will also, at step 92, determine if post-warranty coverage istriggered.

If, at step 92, coverage is triggered, the insurance provider or policyunderwriter will, at step 93, assume responsibility for, and effectpayment to the premises owner and/or leasing or renting entity for, theexcess wear and tear and/or damage. The insurance provider or policyunderwriter will also, at step 93, assume responsibility for, and effectpayment for any post-warranty repairs, if such coverage is in effect.If, however, coverage is not triggered at step 92, the insuranceprovider or underwriter will, at step 94, have no liability to thepremises owner and/or leasing or renting entity.

At step 95, it will be determined if an incentive policy is in effect.If no incentive policy is in effect, the operation-of the apparatusand/or process will cease at step 96. If, at step 95, it is determinedthat an incentive policy is in effect, the apparatus 100 will, at step97, determine the amount of the rebate and/or returned premium which isto be returned to the individual and/or business entity. At step 98, theindividual and/or business entity will receive the rebate.

If no excess wear and tear and/or no damage has been found to exist, theindividual and/or business entity will receive the full rebate amount atstep 98. If excess wear and tear and/or damage has been found to existat, or above, a pre-defined amount, the individual and/or businessentity will receive no rebate at step 98. If excess wear and tear and/ordamage has been found to exist below a pre-defined limit, a rebateamount will be calculated according to a pre-defined calculation and/orinterpolation routine and the individual and/or business entity willreceive the calculated amount at step 98.

In the preferred embodiment, a linear interpolation routine is utilizedto calculate the partial rebate amount at step 98. It is important tonote that any mathematical computation routine and/or interpolationroutine, linear or non-linear, as well as any other method forcalculating an amount, or a partial amount, may be utilized in theprocessing scheme of the present invention. As noted above, rebatecalculations will be performed during step 97.

Once the individual and/or business entity has been issued their or itsrebate, the liability of the insurance provider and/or underwriter willcease at step 99. The operation and method of the present invention willthen cease at step 100.

The apparatus 100 and/or the CPU 1 can process transactions involvingthe purchase and/or sale of the insurance policies described herein. Inthis manner, the apparatus 100 and/or the CPU 1 can be utilized topurchase and/or sell any of the insurance products, services, coverage,and/or policies described herein. The apparatus 100 and/or the CPU 1 canalso be used as a clearinghouse for selling and/or purchasing any or theherein-described insurance products, services, coverage and/or policies.

The apparatus 100 and/or the CPU 1 can also be used to receive and/orprocess insurance claims relating to or arising from any of theherein-described insurance products, services, coverage and/or policies.

The apparatus and method of the present invention may utilize anyconventional techniques and/or insurance policy calculation and/ordetermination methods, in performing any of the processing functionsdescribed herein. The above-described methods, in the preferredembodiment, are implemented with computer programs and/or softwareprograms. It is also noted that the method of the present invention mayalso be practiced manually and/or without a computer.

In an another embodiment, the apparatus of the present invention isutilized in a network environment so as to provide insurance policies,products, services and/or coverage in a network environment such as on,or over, the Internet, the World Wide Web and/or any othercommunications network and/or system. FIG. 5 illustrates the apparatusof the present invention in another embodiment wherein the apparatus isutilized in conjunction with a communications network.

FIG. 5 illustrates a block diagram of an another embodiment of theapparatus of the present invention which is denoted generally by thereference numeral 200. As illustrated in FIG. 5, the apparatus 200comprises a central processing computer 201 and a plurality of remoteuser computers, terminals and/or communication devices 230 (hereinafterreferred to as “remote user device 230”). The central processingcomputer 201 may be a personal computer, a server computer, aworkstation computer, a mainframe computer, a minicomputer or any othersuitable computer processing system which is utilized in a networkenvironment. The central processing computer 201 comprises all essentialnetwork devices and/or network interfacing devices, etc., forfacilitating network operation.

Each of the remote user devices 230 is connected and/or linked with thecentral processing computer 201 via a communication network or medium.In the preferred embodiment, the communication network or medium is atelecommunication and/or telephone communication network. Thetelecommunication and/or telephone network may be a line-connectedcommunication network and/or a wireless communication network. Inanother embodiment, the apparatus 200 is utilized in conjunction with alocal area network (LAN), a wide area network (WAN), a value addednetwork (VAN) or any other communication network. In yet anotherembodiment, the apparatus 200 is utilized on, or over, and/or inconjunction with, the Internet and/or the World Wide Web.

It is important to note that the communication network and/or mediumwhich may be utilized in conjunction with the apparatus and method ofthe present invention may be any suitable communication system and/ornetwork for transmitting information and/or data, including multimedia,video, and/or audio information and/or data, or any other suitableinformation and/or data. In this regard, the communication networkand/or medium may be a radio communication network or system, a digitalcommunication network or system, a satellite communication network orsystem, a cable television communication network or system, a personalcommunications services (PCS) network or system, a telecommunicationnetwork or system, an optical communication network or system, and/orany other suitable communication network(s) and/or system(s), and/or anycombination(s) thereof.

The communications system utilized may operate anywhere in theelectromagnetic and/or radio signal frequency spectrum. As noted above,wireless communication networks and associated wireless communicationsdevices, including wireless modems, may be utilized in conjunction withthe present invention.

It is also important to note that the central processing computer 201and remote user device(s) 230, which may be utilized, in the preferredembodiment, are equipped with the respective and/or correspondingcommunication equipment for transmitting and/or receiving the signals,data and/or information associated with the utilized communicationnetwork, and/or system, and/or any combination(s) thereof.

In the preferred embodiment, the central processing computer 201 is atypical central processing and/or server computer such as those utilizedin conjunction with an on-line service and/or in network environmentssuch as those utilized in conjunction with the Internet, the World WideWeb and/or any other suitable communication network or networkenvironment. In the preferred embodiment, the remote user device 230 isa personal computer (PC) which may be a home or personal computer and/ora laptop computer.

While a personal computer is described as being utilized in thepreferred embodiment, it is also envisioned that the remote user device230 or devices may also be any suitable communication device, such as apersonal communication device and/or a personal communication services(PCS) device, a personal digital assistant, a video telephone, acellular telephone, a line-connected telephone, a wireless or cordlesstelephone, a digital communication device, a digital telephone, adigital television and/or an interactive television and/or any othersuitable communication device. In this regard, the present invention maybe utilized with any suitable device(s) for facilitating communicationsand/or data and/or information transfer in conjunction with the centralprocessing computer 201 in any suitable communications and/or networkenvironment.

The apparatus 200 can be utilized in the same manner as described abovewith regards to FIGS. 1 to 4 so as to provide access to the apparatusand method of the present invention by remote users. In this regard anyuser may access the central processing computer 201 from any remotecomputer, terminal and/or other suitable communication device, so as toperform any of the herein-described processing routines for processingand calculating an insurance premium, plan or policy. In this regard, acentral database (not shown) which is located at the central processingcomputer 201 would contain all of the data and/or information which isstored in the database 7 of the embodiment of FIG. 1 as described above.Further, the apparatus and method of the present invention facilitateson-line and/or network dissemination of insurance policies, products,services and/or coverage so as to allow an individual and/or businessentity to obtain insurance and/or information related thereto for leasedand/or rented entities, from a remote location on, or over, a networkenvironment, such as on, or over, the Internet, the World Wide Web,and/or any other suitable communication network.

In any and/or all of the embodiments described herein, the apparatus 100of the present invention can also be used to process transactionsinvolving the purchase and/or sale of the insurance policies describedherein on or over a communication network and/or on or over the Internetand/or the World Wide Web. In this manner, the apparatus 100 and/or theCPU 1 can be utilized to purchase and/or sell any of the insuranceproducts, services, coverage, and/or policies described herein on orover a communication network and/or on or over the Internet and/or theWorld Wide Web. The apparatus 100 and/or the CPU 1 can also be used as aclearinghouse for selling and/or purchasing any or the herein-describedinsurance products, services, coverage and/or policies.

The apparatus 100 and/or the CPU 1 can also be used to receive and/orprocess insurance claims relating to or arising from any of theherein-described insurance products, services, coverage and/or policiesdescribed herein on or over a communication network and/or on or overthe Internet and/or the World Wide Web.

In another embodiment, the apparatus and method of the present inventioncan be utilized in order to create a credit derivative which is based onany liability or liabilities which can be created by, or which can bepotentially created by, any of the lease insurance policies, products,and/or instruments, which can be provided pursuant to, and/orfacilitated by, the present invention.

The credit derivative can be created by the insurance company, insurer,or other issuer, of any of the lease insurance policies or leaseinsurance products which are described herein as being generated,established, or issued, pursuant to the utilization of the presentinvention. The credit derivative or credit derivatives can be utilizedso as to allow the respective insurance company, insurer, or otherissuer, to hedge its liability or risk of loss, to limit its liabilityor risk of loss, and/or to obtain insurance or reinsurance, for anyliability or liabilities and/or potential liability or potentialliabilities which may be associated with and/or which may result fromthe issuance of any of the herein-described lease insurance policies orlease insurance products.

The credit derivative or credit derivatives can be utilized so as toallow the respective insurance company, insurer, or other issuer, toobtain a degree a degree of insurance or reinsurance for any liabilitieswhich may be created by, or which may potentially be created by, anylease insurance policy or lease insurance policies described herein.

The credit derivative or credit derivatives can be created for any onelease insurance policy or lease insurance product or for any number oflease insurance policies or any number of lease insurance products. Thecredit derivative or credit derivatives can be created for any type oflease insurance policy or lease insurance product or for any types oflease insurance policies or any number of lease insurance products.

Applicant hereby incorporates by reference herein the subject matter andteachings of The Handbook Of Credit Derivatives, Jack Clark Francis, etal., McGraw Hill, 1999; Credit Derivatives: Trading & Management OfCredit & Default Risk, Satyajit Das, Wiley 1998, for the purpose ofincorporating into this application the teachings of the abovereferences which describe the types of credit derivatives, the uses andapplications of credit derivatives, the use of credit derivatives inportfolio management, the use of credit derivatives in risk management,the pricing of credit derivatives, and the valuation of creditderivatives, and the manner in which credit derivatives can beimplemented, priced and utilized.

FIG. 6 illustrates a flow diagram of a method for utilizing the presentinvention in order to create and/or to price a credit derivativecorresponding to any liability or potential liability associated with alease insurance policy or lease insurance product. With reference toFIG. 6, the method commences at step 600. At step 601, the apparatus ofthe present invention 100 or 200 and/or the CPU 1 or the centralprocessing computer 201 will identify the lease insurance policy orlease insurance product which is being offered and can ascertain theliability, the potential liability, or the risk of loss, which is orwhich may be associated with the lease insurance policy or the leaseinsurance product.

At step 602, the apparatus of the present invention 100 or 200 and/orthe CPU 1 or the central processing computer 201 can identify a creditderivative which can be created and issued to investors in order toreduce the liability or risk of loss associated with the lease insurancepolicy or product. The credit derivative can be any one or more of abond, a note, a securitized bond, a securitized note, a swap, a creditswap, an option, a credit option, a put option, a call option, acredit-linked note, a total return swap, a default swap, an exoticoption, an exotic credit option, a swaption or a swap option, a totalrate of return swap, a loan swap, a credit swap, or any other instrumentwhich can be utilized as a credit derivative.

At step 603, the apparatus of the present invention 100 or 200 and/orthe CPU 1 or the central processing computer 201 can determine the priceor pricing of the credit derivative, credit derivatives, or creditderivative units, for the credit derivative identified at step 602. Atstep 603, the apparatus of the present invention 100 or 200 and/or theCPU 1 or the central processing computer 201 can also determine and/orgenerate the offering terms (i.e. time for holding the creditderivative, time to maturity of the credit derivative instrument,interest rate of the credit derivative, rate of return of the creditderivative, default risk information, issuer default risk, probabilityof default by the issuer of the credit derivative, probability ofnon-default by the issuer, and any other terms or information which canbe typically provided along with a credit derivative or other investmentor financial instrument, etc.).

At step 604, the apparatus of the present invention 100 or 200 and/orthe CPU 1 or the central processing computer 201 can output theinformation generated at step 602 regarding the identified creditderivative and the information generated at step 603 regarding thepricing and/or offering terms for the credit derivative, creditderivatives, or credit derivative units. At step 605, the issuer of thecredit derivatives can issue the credit derivatives to investors.Thereafter, the method of FIG. 6 will cease at step 606.

In any and/or all of the embodiments described herein the apparatus ofthe present invention 100 or 200 and/or the CPU 1 or the centralprocessing computer 201 can be utilized to process transactionsinvolving the purchase and/or sale of any of the credit derivativesdescribed herein. These credit derivative transactions can also beperformed on or over a communication network and/or on or over theInternet and/or the World Wide Web. In this manner, the apparatus of thepresent invention 100 or 200 and/or the CPU 1 or the central processingcomputer 201 can be utilized to sell and/or purchase credit derivativesfor or relating to any of the insurance products, services, coverage,and/or policies described herein. The apparatus of the present invention100 or 200 and/or the CPU 1 or the central processing computer 201 canalso be used as a clearinghouse for selling and/or purchasing creditderivatives for or relating to any of the herein-described insuranceproducts, services, coverage and/or policies.

The apparatus 100 and/or the CPU 100 can also be used to receive and/orprocess trades and/or claims relating to, or arising from, any of theherein-described credit derivatives.

In another preferred embodiment, the apparatus of the present invention100 or 200 and/or the CPU 1 or the central processing computer 201 canbe, can also be used as, and/or can be an integrated and/or peripheralcomponent or system of, a transaction computer system or a computersystem which is used for processing insurance transactions, financialtransactions, insurance claims transactions, and/or brokeragetransactions. For example, the apparatus of the present invention canbe, and/or can be utilized in connection with an insurance computer, afinancial computer, an insurance claims computer, and/or a brokeragecomputer.

In any and/or all of the embodiments described herein, the apparatus andmethod of the present invention can also be used on or over anycommunication network and/or on or over the Internet and/or the WorldWide Web.

While the present invention has been described and illustrated invarious preferred and alternate embodiments, such descriptions aremerely illustrative of the present invention and are not to be construedto be limitations thereof. In this regard, the present inventionencompasses all modifications, variations and/or alternate embodimentswith the scope of the present invention being limited only by the claimswhich follow.

1. An apparatus for processing lease insurance information, comprising:a processor for processing a first data set using a second data set anda third data set, wherein the first data set contains information forgenerating at least one of an insurance premium and an insurance policyfor providing insurance for excess wear and tear for a leased entity,wherein the second data set contains information regarding at least oneof the entity to be leased and a term of the lease, and wherein thethird data set contains information regarding at least one of a drivinghistory of a leasing individual, a driving history of a leasing entity,a usage history of a leasing individual, a usage history of a leasingentity, an insurance history of a leasing individual, an insurancehistory of a leasing entity, a past leasing history of a leasingindividual, a past leasing history of a leasing entity, a desired leaseinsurance coverage, a lease insurance deductible, and a lease insurancepolicy term, and further wherein the processor generates a fourth dataset containing the at least one of an insurance premium and an insurancepolicy for providing insurance for excess wear and tear for the leasedentity based on the processing using the second data set and the thirddata set; and at least one of a display device and an output device forproviding information contained in at least one of the fourth data set,the insurance premium, and the insurance policy.
 2. The apparatus ofclaim 1, wherein the entity is at least one of a vehicle, a motorvehicle, a truck, construction equipment, farm equipment, a boat, arecreational vehicle, an airplane, an aircraft, a motorcycle, officeequipment, a computer, computer equipment, a residential premises, acommercial premises, an article of personal property, and an article ofcommercial property.
 3. The apparatus of claim 1, wherein the processorprocesses information regarding at least one of a vehicle, a motorvehicle, a truck, construction equipment, farm equipment, a boat, arecreational vehicle, an airplane, an aircraft, a motorcycle, officeequipment, a computer, computer equipment, a residential premises, acommercial premises, an article of personal property, an article ofcommercial property, an individual, a business entity, a repair cost, areplacement cost, a probability of damage, a probability ofpost-warranty repair, historical leasing information, at least one oflocality, regional, geographical, and seasonal, informationcorresponding to the lease, a usage pattern, a usage habit, amanufacturer's warranty, a lease term, a lease duration, historicalrepair information, repair frequency information, insurance policyinformation, insurance premium information, insurance productinformation, insurance service information, an insurance premium rebateincentive program, insurance premium rebate incentive information,actuarial information, statistical information, risk information, andrisk of loss information.
 4. The apparatus of claim 1, wherein the thirddata set contains information regarding an insurance premium rebateincentive, and further wherein the processor generates the forth dataset containing at least one of information, an insurance premium, and aninsurance policy, containing at least one of a premium rebate incentivefeature and a premium rebate incentive provision.
 5. The apparatus ofclaim 1, wherein the processor processes information regarding atransaction involving a purchase or a sale of the insurance policy. 6.The apparatus of claim 1, further comprising: an input device forinputting information contained in at least one of the first data set,the second data set, and the third data set, and further wherein the atleast one of a display device and an output device provides informationcontained in at least one of the fourth data set, the insurance premium,and the insurance policy, to a prospective policy holder.
 7. Theapparatus of claim 1, further comprising: a receiver for receiving arequest for information contained in at least one of the first data set,the second data set, the third data set, and the fourth data set, from aremote communication device; and a transmitter for transmittinginformation contained in the at least one of the first data set, thesecond data set, the third data set, and the forth data set, to theremote communication device in response to the request.
 8. An apparatusfor processing lease insurance information, comprising: a processor forprocessing a first data set using a second data set and a third dataset, wherein the first data set contains information for generating atleast one of an insurance premium and an insurance policy for providinginsurance for post-warranty repairs for a leased entity, wherein thesecond data set contains information regarding at least one of theentity to be leased and a term of the lease, and wherein the third dataset contains information regarding at least one of a driving history ofthe leasing individual, a driving history of the leasing entity, a usagehistory of the leasing individual, a usage history of the leasingentity, an insurance history of the leasing individual, an insurancehistory of the leasing entity, a past leasing history of the leasingindividual, a past leasing history of the leasing entity, a desiredlease insurance coverage, a lease insurance deductible, and a leaseinsurance policy term, and further wherein the processor generates afourth data set containing at least one of an insurance premium and aninsurance policy for providing insurance for post-warranty repairs forthe leased entity based on the processing using the second data set andthe third data set; and at least one of a display device and an outputdevice for providing information contained in at least one of the fourthdata set, the insurance premium, and the insurance policy.
 9. Theapparatus of claim 8, wherein the leased entity is at least one of avehicle, a motor vehicle, a truck, construction equipment, farmequipment, a boat, a recreational vehicle, an airplane, an aircraft, amotorcycle, office equipment, a computer, computer equipment, aresidential premises, a commercial premises, an article of personalproperty, and an article of commercial property.
 10. The apparatus ofclaim 8, wherein the processor processes information related to at leastone of a vehicle, a motor vehicle, a truck, construction equipment, farmequipment, a boat, a recreational vehicle, an airplane, an aircraft, amotorcycle, office equipment, a computer, computer equipment, aresidential premises, a commercial premises, an article of personalproperty, an article of commercial property, an individual, a businessentity, a repair cost, a replacement cost, a probability of damage, aprobability of post-warranty repair, historical leasing information, atleast one of locality, regional, geographical, and seasonal, informationcorresponding to the lease, a usage pattern, a usage habit, amanufacturer's warranty, a lease term, a lease duration, historicalrepair information, repair frequency information, insurance policyinformation, insurance premium information, insurance productinformation, insurance service information, an insurance premium rebateincentive program, insurance premium rebate incentive information,actuarial information, statistical information, risk information, andrisk of loss information.
 11. The apparatus of claim 8, wherein thethird data set contains information regarding an insurance premiumrebate incentive, and further wherein the processor generates the forthdata set containing at least one of information, an insurance premium,and an insurance policy, containing at least one of a premium rebateincentive feature and a premium rebate incentive provision.
 12. Theapparatus of claim 11, wherein the processor determines whether the atleast one of a premium rebate incentive feature and a premium rebateincentive provision is in effect, and further wherein the processordetermines an amount of an insurance premium to be refunded.
 13. Theapparatus of claim 8, further comprising: an input device for inputtinginformation contained in at least one of the first data set, the seconddata set, and the third data set, and further wherein the at least oneof a display device and an output device provides information containedin at least one of the fourth data set, the insurance premium, and theinsurance policy, to a prospective policy holder.
 14. The apparatus ofclaim 8, wherein the processor processes information regarding atransaction involving a purchase or a sale of the insurance policy. 15.An apparatus for processing lease insurance information, comprising: aprocessor for processing a first data set using a second data set and athird data set, wherein the first data set contains information forgenerating at least one of an insurance premium and an insurance policyfor providing insurance for at least one of excess wear and tear for aleased entity and post-warranty repairs for a leased entity, wherein thesecond data set contains information regarding at least one of theentity to be leased and a term of the lease, and wherein the third dataset contains information regarding at least one of a driving history ofthe leasing individual, a driving history of the leasing entity, a usagehistory of the leasing individual, a usage history of the leasingentity, an insurance history of the leasing individual, an insurancehistory of the leasing entity, a past leasing history of the leasingindividual, a past leasing history of the leasing entity, a desiredlease insurance coverage, a lease insurance deductible, and a leaseinsurance policy term, wherein the processor generates a fourth data setcontaining at least one of an insurance premium and an insurance policyfor providing at least one of an insurance policy and an insuranceproduct for at least one of excess wear and tear for the leased entityand post-warranty repairs for the leased entity based on the processingusing the second data set and the third data set, wherein the processorgenerates a fifth data set containing information regarding at least oneof a liability, a potential liability, and a risk of loss, associatedwith the at least one of an insurance policy and an insurance product;and at least one of a display device and an output device for providinginformation contained in at least one of the fourth data set, the fifthdata set, the insurance premium, the insurance policy, and the insuranceproduct.
 16. The apparatus of claim 15, wherein the entity is at leastone of a vehicle, a motor vehicle, a truck, construction equipment, farmequipment, a boat, a recreational vehicle, an airplane, an aircraft, amotorcycle, office equipment, a computer, computer equipment, aresidential premises, a commercial premises, an article of personalproperty, and an article of commercial property.
 17. The apparatus ofclaim 15, wherein the processor processes information regarding at leastone of one of a vehicle, a motor vehicle, a truck, constructionequipment, farm equipment, a boat, a recreational vehicle, an airplane,an aircraft, a motorcycle, office equipment, a computer, computerequipment, a residential premises, a commercial premises, an article ofpersonal property, an article of commercial property, an individual, abusiness entity, a repair cost, a replacement cost, a probability ofdamage, a probability of post-warranty repair, historical leasinginformation, at least one of locality, regional, geographical, andseasonal, information corresponding to the lease, a usage pattern, ausage habit, a manufacturer's warranty, a lease term, a lease duration,historical repair information, repair frequency information, insurancepolicy information, insurance premium information, insurance productinformation, insurance service information, an insurance premium rebateincentive program, insurance premium rebate incentive information,actuarial information, statistical information, risk information, andrisk of loss information.
 18. The apparatus of claim 15, wherein thethird data set contains information regarding an insurance premiumrebate incentive, and wherein the processor generates the forth data setcontaining at least one of information, an insurance premium, aninsurance policy, and an insurance product, containing at least one of apremium rebate incentive feature and a premium rebate incentiveprovision.
 19. The apparatus of claim 15, wherein the processoridentifies a credit derivative for at least one of providing a hedgingposition, providing insurance, and providing reinsurance, for the atleast one of a liability, a potential liability, and a risk of loss,associated with the at least one of an insurance policy and an insuranceproduct.
 20. The apparatus of claim 15, wherein the processor processesinformation regarding a transaction involving at least one of apurchase, a sale, and a trade, regarding a credit derivative associatedwith at least one of an insurance policy and an insurance product.
 21. Acomputer-implemented method for processing lease insurance information,comprising: processing, with a computer or with a processor, a firstdata set of information using a second data set of information and athird data set of information, wherein the first data set of informationcontains information for generating at least one of an insurance premiumand an insurance policy for at least one of providing insurance forexcess wear and tear for a leased entity and providing insurance forpost-warranty repairs for a leased entity, wherein the second data setof information contains information regarding at least one of the entityto be leased and a term of the lease, and wherein the third data set ofinformation contains information regarding at least one of a desiredlease insurance coverage, a lease insurance deductible, a leaseinsurance policy term, a driving history of the leasing individual, adriving history of the leasing entity, a usage history of the leasingindividual, a usage history of the leasing entity, an insurance historyof the leasing individual, an insurance history of the leasing entity, apast leasing history of the leasing individual, and a past leasinghistory of the leasing entity; generating, with the computer or with theprocessor, a fourth data set of information containing informationregarding at least one of an insurance premium and an insurance policyfor providing at least one of an insurance policy and an insuranceproduct at least one of for providing insurance for excess wear and tearfor the leased entity and for providing insurance for post-warrantyrepairs for the leased entity based on the processing using the seconddata set of information and the third data set of information; and atleast one of displaying, via a display device, and outputting, via anoutput device, information contained in at least one of the fourth dataset of information, the insurance premium, and the insurance policy. 22.The computer-implemented method of claim 21, wherein the entity is atleast one of a vehicle, a motor vehicle, a truck, constructionequipment, farm equipment, a boat, a recreational vehicle, an airplane,an aircraft, and a motorcycle.
 23. The computer-implemented method ofclaim 21, wherein the entity is at least one of office equipment, acomputer, computer equipment, a residential premises, a commercialpremises, an article of personal property, and an article of commercialproperty.
 24. The computer-implemented method of claim 21, furthercomprising: processing information regarding at least one of a vehicle,a motor vehicle, a truck, construction equipment, farm equipment, aboat, a recreational vehicle, an airplane, an aircraft, a motorcycle,office equipment, a computer, computer equipment, a residentialpremises, a commercial premises, an article of personal property, anarticle of commercial property, an individual, a business entity, arepair cost, a replacement cost, a probability of damage, a probabilityof post-warranty repair, historical leasing information, at least one oflocality, regional, geographical, and seasonal, informationcorresponding to the lease, a usage pattern, a usage habit, amanufacturer's warranty, a lease term, a lease duration, historicalrepair information, repair frequency information, insurance policyinformation, insurance premium information, insurance productinformation, insurance service information, an insurance premium rebateincentive program, insurance premium rebate incentive information,actuarial information, statistical information, risk information, andrisk of loss information.
 25. The computer-implemented method of claim21, wherein the third data set of information contains informationregarding an insurance premium rebate incentive, and further wherein theforth data set of information contains information regarding at leastone of an insurance premium and an insurance policy containing at leastone of a premium rebate incentive feature and a premium rebate incentiveprovision.
 26. The computer-implemented method of claim 21, furthercomprising: processing information regarding a transaction involving apurchase or a sale of the insurance policy.
 27. The computer-implementedmethod of claim 21, wherein the fourth data set of information containsinformation regarding an insurance premium and an insurance policy forproviding at least one of an insurance policy and an insurance productfor providing insurance for excess wear and tear for the leased entity.28. The computer-implemented method of claim 21, wherein the fourth dataset of information contains information regarding an insurance premiumand an insurance policy for providing at least one of an insurancepolicy and an insurance product for providing insurance forpost-warranty repairs for the leased entity.
 29. Thecomputer-implemented method of claim 21, further comprising: inputting,with or via an input device, information contained in at least one ofthe first data set of information, the second data set of information,and the third data set of information; and displaying or outputting,with or via a display device or with or via an output device,information contained in at least one of the fourth data set ofinformation, the insurance premium, and the insurance policy, to aprospective policy holder.
 30. The computer-implemented method of claim21, further comprising: receiving, with or via a receiver, a request forinformation contained in at least one of the first data set ofinformation, the second data set of information, the third data set ofinformation, and the fourth data set of information, from a remotecommunication device; and transmitting, with or from a transmitter,information contained in the at least one of the first data set ofinformation, the second data set of information, the third data set ofinformation, and the forth data set of information, to the remotecommunication device in response to the request.
 31. Thecomputer-implemented method of claim 21, further comprising: generatinga fifth data set of information containing information regarding atleast one of a liability, a potential liability, and a risk of loss,associated with the at least one of an insurance policy and an insuranceproduct; and identifying a credit derivative for at least one ofproviding a hedging position, providing insurance, and providingreinsurance, for the at least one of a liability, a potential liability,and a risk of loss, associated with the at least one of an insurancepolicy and an insurance product.
 32. The computer-implemented method ofclaim 21, further comprising: processing information regarding atransaction involving at least one of a purchase, a sale, and a trade,regarding the credit derivative associated with at least one of aninsurance policy and an insurance product.
 33. An apparatus forprocessing lease insurance information, comprising: a computer or aprocessor for processing a first data set of information using a seconddata set of information and a third data set of information, wherein thefirst data set of information contains information for generating atleast one of an insurance premium and an insurance policy for at leastone of providing insurance for excess wear and tear for a leased entityand providing insurance for post-warranty repairs for a leased entity,wherein the second data set of information contains informationregarding at least one of the entity to be leased and a term of thelease, and wherein the third data set of information containsinformation regarding at least one of a desired lease insurancecoverage, a lease insurance deductible, a lease insurance policy term, adriving history of the leasing individual, a driving history of theleasing entity, a usage history of the leasing individual, a usagehistory of the leasing entity, an insurance history of the leasingindividual, an insurance history of the leasing entity, a past leasinghistory of the leasing individual, and a past leasing history of theleasing entity, wherein the computer or the processor generates a fourthdata set of information containing information regarding at least one ofan insurance premium and an insurance policy for providing at least oneof an insurance policy and an insurance product at least one of forproviding insurance for excess wear and tear for the leased entity andfor providing insurance for post-warranty repairs for the leased entitybased on the processing using the second data set of information and thethird data set of information; and a display device or an output device,wherein the display device or the output device provides informationcontained in at least one of the fourth data set of information, theinsurance premium, and the insurance policy.
 34. The apparatus of claim33, wherein the entity is at least one of a vehicle, a motor vehicle, atruck, construction equipment, farm equipment, a boat, a recreationalvehicle, an airplane, an aircraft, and a motorcycle.
 35. The apparatusclaim 33, wherein the entity is at least one of office equipment, acomputer, computer equipment, a residential premises, a commercialpremises, an article of personal property, and an article of commercialproperty.
 36. The apparatus of claim 33, wherein the apparatus processesinformation regarding at least one of a vehicle, a motor vehicle, atruck, construction equipment, farm equipment, a boat, a recreationalvehicle, an airplane, an aircraft, a motorcycle, office equipment, acomputer, computer equipment, a residential premises, a commercialpremises, an article of personal property, an article of commercialproperty, an individual, a business entity, a repair cost, a replacementcost, a probability of damage, a probability of post-warranty repair,historical leasing information, at least one of locality, regional,geographical, and seasonal, information corresponding to the lease, ausage pattern, a usage habit, a manufacturer's warranty, a lease term, alease duration, historical repair information, repair frequencyinformation, insurance policy information, insurance premiuminformation, insurance product information, insurance serviceinformation, an insurance premium rebate incentive program, insurancepremium rebate incentive information, actuarial information, statisticalinformation, risk information, and risk of loss information.
 37. Theapparatus of claim 33, wherein the third data set of informationcontains information regarding an insurance premium rebate incentive,and further wherein the forth data set of information containsinformation regarding at least one of an insurance premium and aninsurance policy containing at least one of a premium rebate incentivefeature and a premium rebate incentive provision.
 38. The apparatus ofclaim 33, wherein the apparatus processes information regarding atransaction involving at least one of a purchase and a sale of theinsurance policy.
 39. The apparatus of claim 33, wherein the fourth dataset of information contains information regarding an insurance premiumand an insurance policy for providing at least one of an insurancepolicy and an insurance product for providing insurance for excess wearand tear for the leased entity.
 40. The apparatus of claim 33, whereinthe fourth data sat of information contains information regarding aninsurance premium and an insurance policy for providing at least one ofan insurance policy and an insurance product for providing insurance forpost-warranty repairs for the leased entity.
 41. The apparatus of claim33, further comprising: a receiver, wherein the receiver receives arequest for information contained in at least one of the first data setof information, the second data set of information, the third data setof information, and the fourth data set of information, wherein therequest is transmitted from a remote communication device; and atransmitter, wherein the transmitter transmits information contained inthe at least one of the first data set of information, the second dataset of information, the third data set of information, and the forthdata set of information, to the remote communication device in responseto the request.
 42. The apparatus of claim 41, wherein the informationcontained in the at least one of the first data set of information, thesecond data set of information, the third data set of information, andthe forth data set of information, is transmitted to the remotecommunication device on or over at least one of the Internet and theWorld Wide Web.
 43. The apparatus of claim 33, wherein the apparatusgenerates a fifth data set of information containing informationregarding at least one of a liability, a potential liability, and a riskof loss, associated with the at least one of an insurance policy and aninsurance product, and further wherein the apparatus identifies a creditderivative for at least one of providing a hedging position, providinginsurance, and providing reinsurance, for the at least one of aliability, a potential liability, and a risk of loss, associated withthe at least one of an insurance policy and an insurance product. 44.The apparatus of claim 43, wherein the apparatus processes informationregarding a transaction involving at least one of a purchase, a sale,and a trade, regarding the credit derivative associated with at leastone of an insurance policy and an insurance product.